I have couple of local real estate investment group approach me for participation in their projects (shops with apt rental on top floors kind of model , multifamily,..). Estimation is about 12% yearly return for 5 years . Property disposition after 5 years with capital return + 25% returns. 20K minimum to participate.This seems like pretty much similar to crowdfund (fundrise) except that this is in around my local real estate market.

Whereas the other option I have is consider buy and manage a separate rental on my own name. I already own couple of rentals in the area.

I am planning to invest like $150K but unable to makeup mind. Going with investment group takes out the headache of managing but it increases financial risks/ gives control over finances.

unable to decide on this. any experiences from people on the forum on this ? pls share your opinion.

Just sounds scary. No control over the investment, no security. You think they are going to pay back your $20-150k investment when things go sideways? No, they'll take care of their larger contributors that are in tight with the syndication and bring $1mm+ to the deal.

In addition, we're at the top of a market cycle that has already shown signs of cooling.

I've taken plenty of risk in real estate but I've had control of the project. I've also provided lending but I've held first position on the asset that was worth well above what I lent.

I just don't see any of that security with this project and no matter what, you're going to be a small player that loses if things go sideways.

After being a landlord of commercial real estate for 18 years, I say invest by yourself, especially since you have experience! I agree with all the reasons stated above. I watched my accountant go from doing a "limited partnership" and highly recommending them, to five years later losing a ton of money. He said, "I had no control and lost all my money."

Two other examples.... my father has owned commercial property for 40 years. The only time he has gotten into trouble was when he had partners in different projects.

A guy I know is a developer that somehow convinces people to invest, (sometimes the realtors come to him begging to do projects!) and several of the projects he has done over the years have gone bad. He has literally lost millions of people's dollars and will never have the chance to pay them back. He just cannot earn enough in one lifetime. He is not the only one.... he tells lots of stories where others he knows have done the same thing. They don't mean to do it.... the market downturns and systems go awry. They just lose the money and their hair too! :)

Just invest in something you can control. Or invest just the money you don't mind losing. Then when it turns out positive....you scored!